Sneakernomics: Meet Gen Z

Retail
Sneakernomics: I write about the culture and business of sports

A recent blog entry of mine that addressed the impact of children on the sales of athletic shoes and apparel prompted a lot of questions from readers. Many of the questions asked related to ways of better understanding the profile and values associated with Generation Z (Gen Z). In this blog, we will explore the importance of this new generation.

Profile of this new consumer

While there is currently no consensus on the exact range of birth years, most define Gen Z as having been born any time after the Millennial Generation (from as early as the mid-1990s to present day), which means the oldest of this generation can already be in their teens. This cohort is the most diverse ever - even more diverse than the Millennials. They are also the generation known for being the most internet savvy of them all. The major events in their short lives include 9/11, seeing the election of the first African-American U.S. president, Sandy Hook and other instances of mass violence, and climate change.

Gen Z is Hyper-connected

This generation has never known a world without a smart phone (and nearly 40% of toddlers have access to a tablet). Gen Z is both hyper-local and hyper-global, meaning they are aware of what is happening both regionally and globally.

Looking for meaning

Those older Gen Z Americans are looking for meaning from work, relationships, products and brands. They value relationships above all else, making them both tolerant and respectful.

Supremely confident, but risk averse

Like the Millennials, Gen Z is supremely confident, raised to “do anything you want”. But all the choices have made Gen Z a more risk averse group than their predecessors. This generation has been described as “prematurely mature”. Thanks to the internet, they know too much, too soon. This loss of innocence in the early stages of their development has made them pragmatic and resilient.

Entrepreneurial

Gen Z is entrepreneurial. They believe that the community can and will solve problems. “Life hacks” - meaning a trick, a skill or shortcut that increases efficiency and productivity, or solves problems - are revered. This makes Gen Z intensely collaborative.

From Self to Selfies

Gen Z has given up virtually all concerns for privacy. They share everything. This makes them ripe for contextual marketing.

Tech reliant

We have learned that Millennials are very tech savvy, but Gen Z has taken this to a whole new level; one that requires them to be tethered to their smartphones. They have only known a user-generated, wireless, hyper-connected world. To them, technology is invisible but omnipresent.

Knowledge is just one click away

For Gen Z, education is on-demand. They will learn things when they need to know them. In the Gen Z world, everything is “smart”. All objects have behaviors.

Gen Z is Visual

They prefer online information to print. They would rather watch a video instead of reading instructions. Gen Z do not use Facebook as much as other generations because, “it’s for old people.” Instead, they prefer apps like Pinterest and Instagram. Yes, Gen Z favors pictures over text.

Brands and Retailers must adapt

In order to successfully serve Gen Z, brands/retailers must again adjust the way they market. Because Gen Z wants a relationship with brands, they will seek out brands that share their values. Brands must earn their influence with Gen Z and earn it every day.

As with Millennials, markets must listen, not just talk to Gen Z consumers. Brands must be completely transparent, which in turn earns trust. Successful marketing will provide images, not words.

Gen Z wants brands that exceed expectations, and are reliable. Brands and retailers must offer products that reflect reality, not just an ideal of perfection.

Conclusion

Just as the Millennials changed the way brands and retailers approach the business, so will Gen Z. Retailers and brands must accept that Gen Z is a different cohort than Millennials. Those who successfully execute this shift will thrive. Those who do not are doomed to failure.

I have worked for more than 40 years in the Retail industry, the last 20+ years in the Sporting Goods industry, primarily in senior merchant positions. I am widely regarded in the sneaker industry as a Sporting Goods and Athletic shoe expert. I have one of the top 1% most vi...